HomeMy WebLinkAboutAgenda Statement 1979/01/09 Item 10CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT Item No. Io
Qt~~ For meeting of 1/9/79
Resolution /'" Accepting CVT 5-Year Financial Plan Update
ITEM TITLE by Stephen George and Associates and Awarding Payment
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SUBMITTED BY Director of Public works ~,j% jj
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES x NO )
By Resolution No. 9299, the Council authorized and approved an agree-
ment on September 26, 1978, with the firm of Stephen George & Associates
to provide technical and professional services in updating the five-
year (FY 1979-83) financial plan for the Chula Vista Transit system.
This financial plan update will be a part of the City's overall five-
year short range transit development plan which must be submitted to
CPO and UMTA if the City is to receive Federal capital grant and
operating assistance funds.
The update study included the review of the City's prior Transit
Development Reports and supporting records and the update (reappraisal)
of the financial needs through the fiscal year 1983.
Stephen George's review of CVT's prior three-year expenditures and
revenues disclosed the following statistics:
FY 75-76 FY 76-77 FY 77-78
. Revenue Miles in 000's 279 424 480
. Revenue Passengers in 000's 27~~ 283 351
i~To. Buses Operating (Peak) 7 7 7
. Expenditures in 000's 225 306 390
. Sources of Revenues in 000's:
Farebox 55 63 75
City Support 16 30 32
LTF 154 228 391
Federal 0 0 0
. Total Revenues in 000's 225 321 500
. Excess/(Deficit) 15 93
JAB:nr/DP-006
rv~ ~ rr, t-rn (Continued on supplemental page )
C/lCi 1 D l I J
Agreement Resolution x Ordinance Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
LTF will finance this $810 study.
STAFF RECOMMENDATION
Accept report and award $810 payment to Stephen George and Associates.
BOARD/COMMISSION RECOMMENDATION
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COUNCIL ACTION ----- ;,' -
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Agenda Items No. 10
For Meeting of 1/9/79
Supplemental Page Two
The consultant determined that during the next five-year period
(FY 1979-83)
. Revenue Miles are estimated by CVT to increase from 470,000
to 820,000
. Revenue Passengers will increase from 381,000 to 664,000
. The bus fleet will be replaced and increase to 16
. Assuming a seven percent cost escalation, the base contract
operating cost could increase from $635,000 to $1,451,000
. Total operating cost per revenue mile could increase from
$1.46 to $1.85
. Planned capital improvements will cost $2,517,000
. Total expenditures over the period are estimated to be $7,868,000
The updated study found that the projected sources of revenue funds
over the five-year period (FY 1979-83) are the following:
. Farebox $531,0001
. City Support Requirements 877,000
. Local Transportation Funds 3,677,000
. Advertising and Interest Earnings 28,000
. Federal -
UMTA Section 3 Capital Grants 1,532,000
UMTA Section 5 Operating Grants 730,0002
UMTA Section 9 Planning Grants 50,000
FHWA Federal-Aid-Urban Funds 443,000
. Total sources of revenues $7,868,000
1Rounded to nearest 1,000
2Based on an 80% revenue passengers/20o revenue miles allocation
formula.
The consultant's major conclusions comprised the following:
. The City should maximize the use of Local Transportation Funds,
Federal capital and planning grants and FAU funds. In addition,
Federal Section 5 operating support should be immediately sought
and utilized to balance the budget needs for improved and expanded
intra-city transit services and to minimize the requirements for
local general funds.
. If the City desires to further reduce local general fund support
to CVT in the current fiscal year and thereafter, alternative
capital improvement programs and schedules that may spread the
capital expenditures over several years need to be evaluated.
Potential feasible programs may well justify possibly higher LTF
claim options and lower local support fund requirements.
Two major recommendations which staff agrees with and will be imple-
mented are:
. Complete financial records of CVT being limited to the last two
fiscal years.
Significant changes in this State Transportation Development Act
(TDA) are anticipated prior to July 1, 1980. A more comprehen-
sive reevaluation and update of the CVT Transit Development
Program should be scheduled for late FY 1980 to confirm actual
past experiences vs. the projections of revenue miles and revenue
passengers. The financial plan would thus be refined and updated
accordingly to insure maximum LTF funding available based on the
latest amended changes in State and Federal statutes.
The City should carefully monitor the operator contract, supporting
records system and performance of service provided periodically to
insure the requirements of the contract are satisfied and actual
cost expenditures are reasonable.
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Agenda Item No. 10
For Meeting of 1/9/79
Supplemental Page Three
Two of the major recommendations of this report which staff has
examined and found cannot be implemented are:
. Apply for LTF Article 8 instead of Article 4 funds. The TDA Act of
1971, as well as CALTRANS, states that the City is only eligible
for Article 4 funds.
. Submit a waiver of the 50o LTF budget limitation to the California
Transportation Commission. Staff has found that only operators
in counties under 500,000 population can apply for such a waiver.
This report certainly clarifies the financial condition of
the City in terms of funding its local transit service during the next
five years as depicted in Table 2. This states that the City's support
requirements will reach a figure of $256,000 in fiscal '82 and $345,000
in fiscal '83. The five-year total (through 1983) of City funds going
into the financing of Chula Vista Transit would be approximately
$877,000.
A copy of this report will be available to Council at the City Clerk's
office and at the Council meeting.
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